Being young, I want to start a savings plan that will work for me. is there any one out there that can give me advice on this? I am thinking of starting a 401k or a IRA savings. Being that Social Security might possibly be diminished to non existent in the near future, I would like to start a good plan that I can stick with. I am automotive tech and being that I am in the Union, we have a pension plan but that is still not enough for me. I am unable to start a 401k with my company since they say I am in the union and since I am in the union, I cannot have a 401k with my company.

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2001 E55

2001 E320 Sedan

2001 Subaru Legacy

2006 SLK280

2016 Subaru Outback 3.6

You would do better to put your savings in a coffee can and hide it under your bed. At least you won't lose money.

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For the Saved, this world is the worst it will ever get.
For the unSaved, this world is the best it will ever get.

Clk's Ebay Stuff BUY SOMETHING NOW!!!

Stock market mutual funds that track the S&P 500. The market has increased in value over every 20 year period in US history since records have been kept.

Buy a house and live in it for more than 10 years. The housing market is very low and possibly bottomed out in many markets. The population is increasing. When employment picks up again there will be a mad scramble for houses and your value will go up while your mortgage interest rate stays low. And as your income increases you can use the interest tax deduction.

gold increased 50% this year, when people worry about the value of the currency they buy gold, I dont see any reason not to worry in the near future

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

Gold has never been higher.

gold adjusts for the cycle of intentional currency devaluation, it will never be $500 or $1000 ounce again

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

Depends on financial goals.

Not having a 401k is not a big deal. Many employers offer them in lieu of a pension, some offer a 401k match. In a union shop with a union pension, that supplements whatever else you save/invest.

An IRA is a prudent move, assuming you have an annual excess that you can invest. An index tracking fund is easy. Traditional vs. Roth, based on income eligibility and current financial needs is the choice there.

But don't confuse investing with saving. Your investments are at risk due to market losses. Savings are more/less idle gaining almost nothing at the moment due to low interest rates, but they're accessible for emergencies, large purchases or for later investment. A good savings plan is one that keeps you out of high-interest debt, since then you're not paying someone else to use their money.

I'm a fan of Scott Burns investment advice: keep costs low, don't chase fashionable trends, use debt and credit wisely. He's got his Couch Potato portfolio, the Margarita portfolio, etc. His articles are clear and usually easy to understand. He also provides links to tools where you plan your scenarios.

http://assetbuilder.com/blogs/scott_burns/archive/2010/01/29/couch-potato-investing-and-the-escape-road-account.aspx

buy guns!they only go up in value and some day you just might need one

Rental property in places that were screwed over (or helped, depending on your view) by the popping of the property bubble. And yes, the idiots who bought at inflated prices deserve what they're getting.

Do you mean the "idiots" who were victimized by predatory sub-prime mortgage lenders? Or maybe you're referring to all the honest, hard working "idiots" who found themselves unemployed through no fault of their own, who just happened to buy near the top of the market?

I don't understand your thinking.

I'd start by getting a good, non-commissioned advisor to give you a comparison between available 401K options and your union pension. Compare specifics, maximum contributions, costs and fees, historical performance, who the managers are etc. See which one seems the best. Can you make additional contributions to your pension or is it fixed? Can you opt out? It'll cost you some money but be well worth it to get advice from someone who isn't trying to sell you into a fund.

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You're a daisy if you do.
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84 Euro 240D 4spd. 220.5k sold
04 Honda Element AWD
1985 F150 XLT 4x4, 351W with 270k miles, hay hauler
1997 Suzuki Sidekick 4x4
1993 Toyota 4wd Pickup 226K and counting

X2 on this!!

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TC
Current stable:
- 2004 Mazda RALLYWANKEL
- 2007 Saturn sky redline
- 2004 Explorer...under surgery.

Past: 135i, GTI, 300E, 300SD, 300SD, Stealth

If they couldn't read the agreement, they shouldn't have signed it. "Giving a loan with certain terms" doesn't qualify as victimization. Especially if they paid nearly zero down, which just meant that they were renting from the bank.

I second the gold/silver suggestion. Everyone keeps saying it's this or that, and then it jumps another 200%??? Worst case scenario the buying power doesn't change, but the dollar amount goes down. If you want a fancy acronym, you can even get a gold IRA.

You can't start a 401K unless you work for en employer that offers you one. Those are good because most employers match a certain percentage of your contributions which are pre-tax contributions.

As far as what specific choices to make inside that....I'd have a finacial advisor help select if you have one availible.

Markets go up...markets go down.....but on everage they still gain a lot....and in a couple years when we get rid of the economic anchor in the White house....the markets will be going up again. Making now a good time to get money in the market before it does.

Odd since back when my employer still had a active defined pension plan.....Its frozen now but we still have it, and will when I reach retirement age as its fully funded....we also had a 401K plan. I'm union...just a different one.

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Proud owner of ....
1971 280SE W108
1979 300SD W116
1983 300D W123
1975 Ironhead Sportster chopper
1987 GMC 3/4 ton 4X4 Diesel
1989 Honda Civic (Heavily modified)
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Section 609 MVAC Certified
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"He who fights with monsters might take care lest he thereby become a monster. And if you gaze for long into an abyss, the abyss gazes also into you." - Friedrich Nietzsche